Product Pricing Calculator
Set a product price from unit cost, overhead, shipping, selling fees, planned discounts, and target profit margin.
Recommended price
Formula
Required Revenue = Costs / (1 - Fee Percent - Target Margin)
Selling Price = (Required Revenue - Shipping Charged) / (1 - Planned Discount) How the formula works
The calculator starts with variable cost: unit cost, overhead per unit, shipping cost, and fixed fee. It then solves for the order revenue needed after percentage fees and target margin.
If you plan to discount the product, the calculator raises the regular selling price so the discounted price can still support the target margin.
Complete example
A product has an $18 unit cost, $4 overhead per unit, $6 shipping cost, no shipping charged to the customer, a $0.30 fixed fee, 5% platform fee, 2.9% payment fee, 35% target margin, and a planned 10% discount.
- Variable cost total: $18 + $4 + $6 + $0.30 = $28.30
- Total percentage fees: 5% + 2.9% = 7.9%
- Revenue factor: 1 - 7.9% - 35% = 57.1%
- Required discounted revenue: $28.30 / 57.1% = $49.56
- Regular selling price with 10% planned discount: $49.56 / 90% = $55.07
This means a regular price around $55.07 can support a 10% discount while preserving about a 35% margin after the costs and fees entered.
Read the product pricing formula guide for the full workflow.
When to use this calculator
- Set a new product price before launch.
- Reprice products after supplier, fulfillment, or platform fee changes.
- Check whether planned discounts can still support your margin target.
- Compare free shipping against customer-paid shipping.
How to interpret the results
Selling price is the regular price before any planned discount. Discounted price is the price after the planned discount. Gross revenue includes the discounted price plus any shipping charged.
If the calculated selling price feels too high for the market, lower costs, reduce fees, charge shipping separately, reduce discounting, or lower the target margin with a clear reason.
Common mistakes
- Pricing from unit cost only and leaving out fulfillment, fixed fees, or overhead.
- Setting a regular price without accounting for frequent discounts.
- Confusing target margin with markup.
- Using marketplace fee assumptions from one platform on another platform.
- Assuming shipping charged and shipping cost are the same number.
Related tools
- Ecommerce Profit Calculator: test the actual profit after fees, ads, and returns.
- Discount Margin Calculator: check margin after a specific promotion.
- Markup Calculator: set a simple price from cost and markup.
- Profit Margin Calculator: calculate margin from known revenue and cost.
FAQ
What does a product pricing calculator include?
A practical product pricing calculator should include unit cost, overhead, shipping or fulfillment, selling fees, fixed fees, discounts, and the target margin.
Is target margin the same as markup?
No. Target margin compares profit to revenue. Markup compares profit to cost.
Should discounts be included before setting the price?
Yes. If discounts are common, include the planned discount before deciding the regular selling price.
What is target margin?
Target margin is the profit percentage you want to keep from order revenue after the costs and fees entered.
Why does shipping charged affect the price?
Shipping charged to the customer adds order revenue. If you charge shipping separately, the product selling price may not need to carry the full shipping cost.
Can this be used for marketplace products?
Yes. Enter the marketplace fee percentage, payment fee percentage, fixed payment fee, and any fulfillment cost that applies to each order.
Why can target margin and fees make pricing impossible?
If fee percentages plus target margin leave no room for product costs, the calculator cannot produce a realistic price under those assumptions.
Disclaimer
This calculator is for general business planning and educational use. It does not replace accounting, tax, platform policy, or financial advice.